The FSOC Proposes Changes to the Way Non-Bank Firms Are Designated

Treasury Secretary Janet Yellen has announced a proposal by the Financial Stability Oversight Council that would revise the way non-bank firms are designated. The existing guidance issued in 2019 created inappropriate hurdles as part of the designation process, she says. Areas under the proposal could attract scrutiny from insurers, private equity players, hedge funds, mutual fund firms and some newer industries such as crypto.